IPO-Note Glenmark Life Sciences Limited
Rs.695-Rs.720 per Equity share Recommendation: Subscribe

Company Profile: –

Glenmark Life Sciences Limited was incorporated as Zorg Laboratories Private Limited in June, 2011. Its name changed to Glenmark Life Sciences Private Limited after the acquisition by Glenmark Pharmaceuticals in 2018. Glenmark Life Sciences Limited manufacture select high value active pharmaceutical ingredients (APIs) in chronic therapeutic areas including cardiovascular disease (CVS), central nervous system disease (CNS), pain management and diabetes. Company has the strong market share in some specialized APIs such as Telmisartan (anti-hypertensive), Atovaquone (anti-parasitic), Perindopril (antihypertensive) etc. It has a portfolio of 120 molecules globally and sold it APIs in India and export to multiple countries in Europe, North America, Latin America, Japan and the rest of the world. Key customers of the company include Glenmark, Teva Pharmaceutical Industries, Torrent Pharmaceuticals, Aurobindo Pharma and Krka. The company has aggregate annual total installed capacity of 725.8 KL as of December 31, 2020 which it intends to increase by enhancing the existing production capacities at Ankleshwar facility during FY22 and Dahej facility during FY22 and FY23 by an aggregate annual total installed capacity of 200 KL. It also intends to develop greenfield project to manufacture APIs that will have an aggregate capacity of 800 KL over the next three to four years. By Glenmark Life Sciences Limited IPO, Glenmark Pharmaceuticals aims to unlock value in a niche API segment that will provide investors the option of betting on a pure play API business.

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Glenmark Life Sciences Limited

Wants To Apply Online

                                                                        Issue Details
Objects of the issue ·          Payment of Rs.800 outstanding purchase consideration to the Promoter of Glenmark pharmaceutical for the spin-off of the API business from the Promoter into Company.

·          Funding capital expenditure requirements.

·          To meet General corporate Purpose.

Issue Size Issue Size – Rs.1513.60 Crore

Fresh Issue- Rs.1060 Crore

Offer for Sale-Rs.453.60 Crore

Face value  

Rs.2 Per Equity Share

Issue Price Rs. 695– Rs. 720
Bid Lot 20 shares
Listing at  

BSE, NSE

Issue Opens: 27thJuly 2021 – 29thJuly 2021
QIB 50% of Net Issue Offer
Retail 35% of Net Issue Offer
NIB 15% of Net Issue Offer

Positive outlook of the Firm:

  • Leadership in Select High Value, Non-Commoditized APIs in Chronic Therapeutic Areas
  • Strong Relationships with Leading Global Generic Companies
  • Quality-Focused Compliant Manufacturing and R&D Infrastructure
  • Cost Leadership across Products through Careful Monitoring and Continuous Effort

Objective of the Issue:

  • Payment of outstanding purchase consideration to the Promoter for the spin-off of the API business from the Promoter into Company
  • Funding capital expenditure requirements and
  • General corporate purposes.

Promoters of the company:

  • Glenmark Pharmaceuticals Limited is the promoter of the company.

Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters 100% 82.84%
Public 17.16%
Source: RHP,,EWL Research,

 

Check Glenmark Life Sciences Limited IPO Allotment Status

Glenmark Life Sciences Limited IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To  Glenmark Life Sciences LimitedIPO Allotment Status
  2. Go to Application Status
  3. Select IPO as Glenmark Life Sciences Limited
  4. Enter your PAN Number or Application Id or DP Client Id.

 

Glenmark Life Sciences Limited IPO

Application Form

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Financial Performance:

Financial -Performance-ipo

Strengths:

  • Leadership in Select High Value, Non-Commoditized APIs in Chronic Therapeutic Areas
  • Strong Relationships with Leading Global Generic Companies
  • Quality-Focused Compliant Manufacturing and R&D Infrastructure
  • Cost Leadership through Careful Monitoring and Continuous Effort

Key Highlights:

  • Total Revenue in FY21 Stood at Rs. 1886 crore as compared to Rs.1549 crore in FY20 witnessing the growth of 21.73% Y-o-Y but it has witnessed a CAGR growth of 46% from FY19 to FY21.
  • In FY21, Revenue from Exports and domesticconstitute 44.4% and 55.60%and Revenue from API business and CDMO stood at 90.63% and 9.37% respectively.
  • Profit after tax stood at Rs.351.6 crore in FY21 reported the growth of 12.3% Y-o-Y in FY21.
  • In FY21,Net profit margin stood at 18.65% vs 20.37% in FY20.
  • CFO/PAT improved by 0.48 times to 1.10 times in FY21.

Risk Factors:

  • Company sourced 40% Raw material from China and any cross country issues could lead to supply chain disruptionand increase of Raw material cost.
  • The third wave of Covid-19 could affect the results ofoperations,financial condition and cash flows.

Outlook:

Glenmark life science is a 100% Subsidiary of the Glenmark Pharmaceuticals.The company has aggregate annual total installed capacity of 725.8 KL as of December 31, 2020 which it intends to increase by enhancing the existing production capacities at Ankleshwar facility during FY22 and Dahej facility during FY22 and FY23 by an aggregate annual total installed capacity of 200 KL. It also intends to develop greenfield project to manufacture APIs that will have an aggregate capacity of 800 KL over the next three to four years.Company has no other significant Debt except the liability of Rs.800 crore to the promoter of Glenmark pharmaceutical. By Glenmark Life Sciences Limited IPO, Glenmark Pharmaceuticals aims to unlock value in a niche API segment that will provide investors the option of betting on a pure play API business.The key therapy areas like oncology, CNS, anti-infectives, CVS (includinganti-thrombotics),diabetes, respiratory disorders and pain. captured about 60.8% of the total formulationsmarket in 2020 and are estimated to capture about 68.2% of the total formulations market by 2026  India supplies almost 40% of the total American generic drug demand and addresses as much as 25% of the total drug demand in theUK. At the higher end of the price band of Rs. 720, the stock is offered at a PE multiple of25.12x on FY21 Post issue EPS of Rs. 28.66 which is in line with industry. Thus,We would recommend Subscribe to this IPO.

 

Lead Manager Details

1)  BOB Capital Markets Limited

1704, B Wing, 17th Floor, Parinee Crescenzo, Plot No. C – 38/39, G Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051, Maharashtra, India

Tel: +91 22 6138 9300

E-mail: gls.ipo@bobcaps.in

Investor grievance ID: investorgrievance@bobcaps.in

Contact Person: Ninad Jape

Website: www.bobcaps.in

SEBI Registration Number: INM000009926

 

2) Goldman Sachs

951-A, Rational House, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025

Tel: +91 22 6616 9000

Email: glsipo@gs.com

Investor Grievance Email: india-client-support@gs.com

Contact Person: Chirag Jasani

Website: www.goldmansachs.com

SEBI Registration Number: MB/INM00001105

3) BofA Securities India Limited

Ground Floor, “A” Wing, One BKC, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 Maharashtra, India

Tel: +91 22 6632 8000

E-mail: dg.glenmark_ipo@bofa.com

Investor Grievance E-mail: dg.india_merchantbanking@bofa.com

Contact Person: Pritish Pani

Website: www.ml-india.com

SEBI Registration Number: INM000011625

4) Kotak Investment Banking

Kotak Mahindra Capital Company Limited, 1st Floor, 27 BKC, Plot No. 27, ‘G’ Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051, Maharashtra, India

Tel: +91 22 4336 0000

E-mail: gls.ipo@kotak.com

Website: www.investmentbank.kotak.com

Investor Grievance ID: kmccredressal@kotak.com

Contact Person: Ganesh Rane

SEBI Registration Number: INM000008704

 

5) DAM Capital Advisors Limited (Formerly known as IDFC Securities Limited)

One BKC, Tower C, 15th Floor Unit No. 1511, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051

Tel: +91 22 4202 2500

E-mail: glenmark.ipo@damcapital.in

Investor grievance e-mail: complaint@damcapital.in

Contact Person: Chandresh Sharma

Website: www.damcapital.in

SEBI Registration No.: MB/INM000011336

6) SBI Capital Markets Limited

202, Maker Tower “E”, Cuffe Parade, Mumbai 400 005, Maharashtra,India

Tel: +91 22 2217 8300

Email: gls.ipo@sbicaps.com

Website: www.sbicaps.com

Investor grievance e-mail: investor.relations@sbicaps.com

Contact Person: Janardhan Wagle

SEBI Registration No: INM000003531

(Source:DRHP)

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